Question

Due to the LNG project, more people were employed. As a result, PNG had a high inflation in 2014. What type of inflation is described above?
A. Demand-Pull inflation.
B. Cost-Push inflation
C. Excess-Supply inflation.
D. Imported inflation.
Answer
Are you sure? Define those four inflation.
Answered by GPT 3.5
B. Cost-Push inflation
Answered by GPT 3.5
Yes, I am sure. Here are the definitions of the four types of inflation:

A. Demand-Pull inflation: This type of inflation occurs when the demand for goods and services exceeds supply, leading to an increase in the overall price level.

B. Cost-Push inflation: This type of inflation occurs when the costs of production increase, leading to producers raising prices to maintain their profit margins.

C. Excess-Supply inflation: This type of inflation occurs when there is excess supply of goods and services that leads to producers lowering prices to sell their products, resulting in a decrease in the overall price level.

D. Imported inflation: This type of inflation occurs when the prices of imported goods and services increase, leading to an increase in the overall price level in the domestic economy.